Spotlight

Indian equity markets are poised for a strong opening on Thursday, with sentiment receiving a boost from a sharp retreat in international crude oil prices. 

GIFT Nifty is trading around 24,305, up 355 points, or 1.48%, signalling the possibility of a substantial gap-up opening for the domestic benchmarks. The sharp advance reflects improving global risk sentiment, supported by lower crude prices and renewed institutional buying. However, the ability of the benchmarks to sustain these gains beyond the opening trades will be crucial in determining whether the positive momentum can translate into a broader upward move.

Crude oil prices have retreated sharply, with WTI falling more than 8% to around $88 per barrel and Brent easing towards the $94–95 range. The decline offers some relief to an oil-import-dependent economy such as India, potentially easing pressure on the import bill, domestic inflation and the current account deficit. A sustained moderation in energy prices could also improve the broader macroeconomic outlook and strengthen investor appetite for domestic equities.

Foreign institutional investors have returned as significant buyers, recording net purchases of approximately ?7,284 crore in the previous session. The revival in overseas fund flows marks an encouraging development for domestic equities, particularly as sustained institutional participation could lend greater depth to the ongoing market recovery.

Wall Street ended sharply higher, with the Dow Jones Industrial Average surging 3%, while the S&P 500 and Nasdaq Composite advanced 1.58% and 0.91%, respectively. However, sentiment across Asian markets remains subdued, with Japan's Nikkei reversing its early gains to trade nearly 1% lower, while South Korea's KOSPI has declined more than 3%, reflecting persistent weakness in technology stocks.

Against this mixed global backdrop, the sustainability of foreign institutional inflows, movements in crude oil prices and the ability of domestic benchmarks to hold on to their initial gains will be key factors shaping market direction through the session.

Technical View

Nifty 50

Nifty continues to demonstrate improving bullish momentum, supported by sustained buying interest and strengthening short-term moving averages.The 24,000 psychological level remains an important technical reference. A sustained move above 24,200 could extend the recovery towards 24,400, while a breakout above 24,400 may open the way for further upside. 

On the downside, 24,000–23,950 could emerge as an immediate support zone following the anticipated gap-up opening, while 23,750–23,700 remains an important underlying support area. The key focus will be on Nifty's ability to sustain its opening gains rather than the strength of the initial advance. A sharp gap-up opening does not necessarily translate into a sustained rally. The first 15–30 minutes of trade will be critical in assessing the strength of the advance, with market breadth and institutional participation offering important clues about the underlying buying conviction.

Bank Nifty

Bank Nifty continues to show improving technical strength, trading above its 50-day EMA and short-term moving averages. Immediate resistance is placed at 56,000–56,200. A sustained breakout above this zone could extend the upward momentum towards 56,500.

On the downside, 55,800–55,600 remains the immediate support zone, followed by 55,200–55,000. The near-term outlook remains cautiously bullish, with banking-sector participation likely to play an important role in sustaining the broader market recovery.